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Gillibrand says student loans should not be tied to market rates

Senator Kirsten Gillibrand says she voted against a recent compromise on student loans because the interest rates shouldn't be tied to market rates.

Last week lawmakers struck a deal to allow rates to be tied to 10 Year Treasury notes.

The compromise brings the rate down almost a month after Congress let them double to 6.8%.

Gillibrand, a Democrat, says she voted against the bill because it’s the wrong result for students in the long term. "They will be laden with debt that they cannot afford. They may have to postpone having children, buying a home, starting a business. And frankly, I don't think the U.S. government should be making money off the backs of our students."

While back below four percent, student loan rates will now rise and fall with the economy - like home or auto loans.

That could allow undergraduate loans to rise to more than 8 percent before a cap kicks in.

Gillibrand says students should also be able to refinance their loans to get better rates.